Source: Economic Events June 21, 2019 - Admiral Markets' Forex Calendar
Last Wednesday, the eyes of the market were on the Fed rate decision and their projection for the US economy, as well as the proposed monetary policy decisions from the Fed.
While the US central bank did not cut rates, markets found several hints in the Fed statement for several cuts in the second half of 2019 (e.g. in the Fed Dot plot), starting with the next meeting in July where the Fed Watch Tool now shows market participants expecting a cut with a 100% probability.
As a result, Gold pushed already to new yearly highs on Wednesday and took out the multi-year-resistance zone around 1,360/365 in the early hours of trading on Thursday.
As we discussed in our weekly market outlook last Monday, […]A break higher and above 1,360/365 can be considered a strong mid-term buy-signal which sees a projected target somewhere around 1,700 USD, and possibly even higher.[…]
That said, under the given fundamental and technical outlook, the current device in Gold seems clearly to be 'Buy the dip', with finding an interesting first long-trigger around 1,360/365 USD.
In general, the bullish picture in Gold on a daily time-frame stays active as long as we trade above 1,266 USD:
Source: Admiral Markets MT5 with MT5-SE Add-on Gold Daily chart (between March 19, 2018, to June 20, 2019). Accessed: June 20, 2019, at 10:00pm GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2014, the value of Gold fell by 1.7%, in 2015, it fell by 10.4%, in 2016, it increased by 8.1%, in 2017, it increased by 13.1%, in 2018, it fell by 1.6%, meaning that after five years, it was up by 6.4%.
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